Better Business Bureau of Minnesota and North Dakota

One hundred years of anything is quite an accomplishment in itself. But when you stop to think about organizations that championed business ethics and marketplace trust since day one, the Better Business Bureau stands alone.

Timeline

Advertising professionals express concern about the pervasive,
false and misleading advertising they believe is causing the public
to distrust all advertising, and therefore all legitimate
enterprise.

1906

The U.S. government brings charges against a number of firms
for deceptive advertising.

1911

Printer's Ink magazine publishes an editorial calling for local
advertising associations around the country to launch Vigilance
Committee programs aimed at challenging false and misleading
advertising.

1912

Minneapolis is the first to respond to the Printer's Ink call
to form a Vigilance Committee (which in 1916 changes its name to
Better Business Bureau).

1914

Mac Martin, the advertising agency owner who led the Vigilance
Committee effort, recalled his decision to hire a full time manager
when, in 1948, he wrote to the BBB:

"We now had the law with teeth in it and our volunteer
'Vigilance Committee' went to work in earnest. We got all kinds of
publicity, but we found our hands full chasing down fake sales and
more crooked schemes than we had ever dreamed of it occurred to me
that if we could hire someone to devote his entire time to the
work, we might sell his services as a reporter to those vitally
interested and make the movement a marketable success."

Mac Martin hired the first BBB professional, H. J. Kenner, a
newspaper reporter, advertising manager, and commercial
organization manager as the first permanent full time manager of
the Minneapolis Vigilance Committee. Kenner went on to head the New
York BBB and the national organization of local Better Business
Bureaus. In 1936, Kenner wrote "The Fight for Truth in
Advertising," chronicling the first years of the BBB movement.

1915 to 1917

The Minneapolis Advertising Forum is awarded the Printer's Ink
Trophy for the outstanding results of its Vigilance Bureau.
Minneapolis wins again in 1916 and again in 1917, at which time
Printers Ink gives permanent possession of the trophy to the
Minneapolis Advertising Forum.

1916

The Minneapolis Vigilance Committee changes its name to Better
Business Bureau and becomes the first BBB in the country.

1919

The Minneapolis BBB takes on one of the biggest stock
promotions of the time when it challenges the accuracy of the
advertising and promotion of stock offerings by Samuel Pandolfo and
his Pan Motor Company in Saint Cloud, Minnesota. When the Better
Business Bureau exposes the operation, Pandolfo responds by suing
the BBB for $1 million. The suit is dismissed and Pandolfo is later
charged with fraud in federal court, found guilty, and serves 10
years in Leavenworth Penitentiary.

1933

BBB Members' newsletter reports the depression-era return of
"The Old Butter Racket" saying:

"Search is now being made for one L. Martin, who used the
local classified newspapers to obtain suckers for the purchase of a
'secret formula' whereby two pounds of butter could be made from
one quart of milk and a miscellaneous assortment of powders. A
Minneapolis individual paid $50 for the formula after a
demonstration, only to discover later that two pounds of butter had
been inserted into the churn before the quart of milk and assorted
powders were added. A warrant has been issued for Martin's
arrest."

1957

The Minneapolis BBB exposes Abundivita, a pyramid scheme
promoted in newspaper ads saying, "Get rich quick with ABUNDIVIA!"
The fraudulent offer involves promotional meetings open to the
public and hosted by a Dr. Jones, who, the BBB discovered, had
attended a phony school. In response, the company sues the BBB for
$3,150,000. The suit is dismissed two weeks later and the company
closes its doors.

1961

The BBB probes the aggressive sales practices of Holland
Furnace Company, a nationwide company using scare tactics to sell
new furnaces to customers. Customers reported the company was
tearing out old furnaces immediately before they could change their
minds. BBB staff turned over the results of its investigation to
Attorney General Walter Mondale. A jury trial ends in a decision
that closed the company down in Minnesota and led to its demise
nationally.

1967

The BBB secret shops Port Mille Lacs, a real estate development
firm near Lake Mille Lacs that sends bait-and-switch mail ads
offering $500 vouchers to purchase land "valued" at $695. The BBB
discovers that the lots are on drainage land unfit for building and
separated from the lake by a highway. A salesperson tells the
shopper that there were only 18 lots with 2 already sold, but there
were plenty of lots in the $1,000-$5,000 price range available.
Postal records disclose that the firm "selected" 91,000 people to
receive this offer. In the spring of 1968, the Minnesota Attorney
General orders the company to sign a stipulation with a permanent
order to cease false bait-and-switch advertising.

1975

The BBB of Minneapolis and the BBB of Saint Paul merge to form
the BBB of Minnesota, which becomes the national leader in
developing and testing formal arbitration services. Over the next
10 years, the BBB establishes itself as a first-class provider of
Alternative Dispute Resolution services, among its many other
programs.

1979

BBB of Minnesota is selected by General Motors (GM) and the
national Council of Better Business Bureaus to conduct a pilot
consumer-business arbitration program. Several state and federal
agencies were enacting "Lemon Laws" to deal with issues in the auto
industry. General Motors was the first company to allow BBB-trained
volunteer arbitrators to render binding decisions regarding
warranty disputes. This new arbitration program resulted in
arbitrators ruling that GM would have to buy-back cars. Until this
time, customers had never been able to return a "lemon" car for a
refund.

1986

A popular national promotion targeting Minnesotans is the offer
of a "boat, complete with motor!" at a very low price. The boat
turns out to be a small blowup raft with a tiny battery-powered
motor, battery not included. Federal postal regulations at the time
required all shipments of questionable products to be made Cash on
Delivery (COD); in other words, consumers had to "pay before they
could peek," often leaving them with products unlike what they were
promised. The BBB of Minnesota partners with KSTP-TV reporter Neil
Murray who airs two news reports warning consumers about the offer.
Murray uses the reports during his testimony before a congressional
panel in Washington to repeal COD/Pay-to-peek. The law is
repealed.

1989

The BBB moves from the Midway area to Gannon Road, just off of
West 7th St.

1990

The BBB acquires their first computer, courtesy of a donation
by AT&T.

1994

BBB of Minnesota President Ron Graham saves the day for several
Twin Cities brides-to-be. After Barbara's Bridal goes bankrupt and
owners suddenly abandon the store, Graham alerts the media and has
bankruptcy trustees unlock the shop to retrieve dresses that brides
had already paid for. That same year Graham also leads a successful
effort to get Wal-Mart to substantiate or modify its claims of
always having the lowest prices. The company agrees to modify its
claims.

1997

The BBB of Minnesota adds the state of North Dakota to its
service area, becoming the Better Business Bureau of Minnesota and
North Dakota.

1998

BBB of Minnesota and North Dakota President Jay Pfaender
improves customer service with new technology so BBB services are
more user-friendly. Pfaender installs a 24-hour phone answering
system and new website to better accommodate consumers who cannot
call during regular business hours.

2001

The BBB Wise Giving Alliance (the Alliance) is formed by
merging the National Charities Information Bureau and the Council
of Better Business Bureaus' Foundation. The Alliance helps donors
make informed giving decisions and advances high standards of
conduct among organizations that solicit contributions from the
public and produces in-depth reports on national charities based on
comprehensive Standards for Charity Accountability. National
charities that meet the standards can apply to participate in the
Alliance's National Charity Seal program.

2007

The BBB offers the Student of Integrity Scholarship, an annual
scholarship program designed to recognize and promote ethics and
integrity among young people. The BBB awards go to two graduating
high school seniors who personify all of the best aspects of high
character in their personal choices and actions. Scholarship money
is awarded directly toward winners' post-secondary education
expenses (tuition or room/board) at any accredited
institution.

2009

The BBB of Minnesota and North Dakota wins the Marshall A. Mott
Award for excellence in communications based upon several criteria:
print and broadcast media placements, presentations before groups,
original material, cooperation with government agencies, and
membership support.

2010

A satellite office is opened up in Fargo, North Dakota.

2011

A second satellite office opened in St. Cloud,
Minnesota. The BBB of Minnesota and North Dakota wins the
coveted Marshall A. Mott Award for the second time. The Minneapolis
Star Tribune names BBB of Minnesota and North Dakota as one of the
Top 100 Workplaces. The BBB ranks 18 of 40 on the list of
small businesses. The BBB competed against 1,200 organizations
statewide, totaling more than 60,000 employee survey
responses.

2012

The BBB celebrates its 100th anniversary! The BBB of Minnesota
and North Dakota moves to new headquarters in Burnsville, MN. The
BBB of Minnesota and North Dakota hosts the first-ever BBB Business Ethics Summit. For the
second stright year, they are named one of the StarTribune Top 100
Workplaces, as well as winning a 2012 Midwest Society of
Association Executives Award of Excellence.

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Better Business Bureau of Minnesota and North Dakota

The mission of the Better Business Bureau is to be the leader in building marketplace trust by promoting, through self-regulation, the highest standards of business ethics and conduct, and to instill confidence in responsible businesses through programs of education and action that inform, assist and protect the general public.